Contract type configuration setup

The Contract type configuration settings let you establish details for contracts by contract type.

Master agreements

As an organization, you can define which contract types should be considered a master agreement. To set a contract type as a master agreement, set the Is this a master agreement field to Yes. When the field is set to Yes, an additional tab is added in the application register home page for master agreements. You can then specify whether to publish the master agreement to an ERP. When the Is this a Master agreement field is set to Yes, the Allow Association to Master agreement field is set to No and is disabled.

For contract types that are not master agreements, you can set the Allow association to Master agreement field. When set to Yes, master agreements can be associated to the contract type, and the Master Agreement tab is shown in the register home page.

Use change orders for this contract type

You can specify whether change orders are allowed for the contract type. When the Use change orders for this contract type toggle is set to Yes, vendor change orders can be created in Contract. When set to No, vendor change order functionality is not available.

Allow changes to existing lines

When the contract type uses change orders, you can specify if lines can be updated in a vendor change order. The Allow changes to existing lines toggle lets you restrict updates to existing lines in a vendor change order. This prevents users from adjusting existing lines and aligns with the functionality of their ERP system.

When the field is set to Yes, line items can be edited or deleted from the vendor change order.

When the field is set to No, the Add existing line items option on the Vendor change order line items tab is disabled, and then all lines added to the vendor change order are Add new line item only. You can only add new lines to the vendor change order. You cannot add existing lines. Existing lines are not editable and cannot be deleted. If the contract is associated to a master agreement, you can add a line from the master agreement.

It is recommended that when you set the toggle to No, you also set the Maximum contract overage allowed without a change order to be 0% to ensure that the line item cannot be changed. With this configuration, every change must be a VCO and must be a new line.

Allow overdelivery on line items

The Allow overdelivery on line items toggle lets you specify whether the contract allows overdelivery on a line item by a vendor. When the toggle is set to Yes, vendors can over deliver by a specified percentage. When the toggle is set to No, vendors cannot overdeliver on line items.

When the Allow overdelivery on line items toggle is set to Yes, you can use the Maximum overdelivery allowed per line item field to set the percentage of a line item that is allowed for overdelivery for the organization. The project settings also have a Maximum overdelivery setting. You can select the Unlimited check box to indicate that any percentage of overdelivery is allowed.

The project-level setting cannot be higher than the organization-level setting. If you change the value of the organization-level setting to a number lower than the project limit, Contract updates the field in the project settings for existing projects and contracts that had a limit set higher than the new organization-level limit. If the organization setting is changed to a number greater than the project limit, Contract does not update the project setting.

Allow overpayment on line items

The Allow overpayment on line items toggle lets you specify whether overpayment of a line item is allowed. When the toggle is set to Yes, you can overpay on line item by a certain percentage. You can specify an overpayment percentage, or you can select the Unlimited check box. When the toggle is set to No, overpayment on a line item is not allowed, and the payment form is not allowed to go through the approval workflow or be submitted.

When the overpayment exceeds the specified percentage, the payment form cannot go through the approval workflow or be submitted.

For more information about overpayment tolerance, see Overpayment tolerance.

Use payment claims for this contract type

You can specify whether to allow payment claims functions for the contract type. When this toggle is set to Yes and the Enable Payment claims toggle on the Payment claim configuration page is also set to Yes, the payment claims features are available for the contract type. This option is enabled only when the Use schedule of values for this contract type toggle is set to Yes.

The payment claims functions apply only to contracts created after payment claims are enabled.

Allow workflow when over budget

The Allow workflow when over budget toggle lets you control whether workflow can be initiated on a contract type based on budget. When the toggle is set to No and the current value of the contract exceeds the WBS current budget, an error shows when you try to start the approval process. You should then check the current value or reach out to the project controller. When the toggle is set to Yes and the current value of the contract exceeds the WBS current budget, a yellow warning banner shows at the top of the Budget check tab if there is a loss. You can still start the workflow if the bid package exceeds the current budget.

Required fields

You can enable or disable fields and specify if enabled fields are required or locked for workflow and purchase orders.

For each contract header field, you can specify if it is enabled. If a field is enabled you can specify whether it is required or locked. The settings for workflow and payment forms work independently. When a field is required for workflow or a payment form, a value must be entered before you can start the approval workflow or generate a payment form. Locking a field prevents users from changing values after the workflow approval or payment form has begun.